The USD/CAD currency pair traded with mild gains around 1.3635 during early European hours on Thursday, as hopes for a US-Iran peace deal to end the war pressured crude oil prices lower, negatively impacting the commodity-linked Canadian Dollar (CAD) against the US Dollar (USD) [1]. US President Donald Trump stated on Wednesday that he had 'very good talks' with Iran and that 'it’s very possible we’ll make a deal.' In response, Iran’s Foreign Ministry spokesman, Esmaeil Baghaei, noted that a US proposal to end the war is still 'under review,' and Tehran will convey its response to mediator Pakistan after finalizing its views [1].
From a technical perspective, USD/CAD maintains a bearish near-term tone as the spot price remains below both the 20-period simple moving average (SMA) and the 100-period exponential moving average (EMA) near 1.3740. The pair is consolidating in the lower half of the recent Bollinger envelope, with the Relative Strength Index (RSI) at approximately 42, indicating waning downside momentum but not yet an oversold condition [1].
Key resistance levels are identified at the Bollinger midline (1.3678), the 100-period EMA (1.3740), and the upper Bollinger band (1.3808). On the downside, notable support is at the lower Bollinger band (1.3548); a break below this level could lead to deeper losses, while holding above it would keep the pair in a corrective range under the cited moving averages [1].
No explicit forward-looking statements or analyst opinions are provided in the article, but the technical setup suggests the pair remains under pressure unless it can break above key resistance levels [1].
CONCLUSION
USD/CAD is trading with mild gains above 1.3600, supported by weaker oil prices amid US-Iran peace hopes, but the technical outlook remains bearish below the 100-day EMA. The pair's direction will likely depend on developments in US-Iran negotiations and crude oil prices, with key technical levels to watch for potential breakout or further downside.